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A terabit (Tb) is defined as 1 trillion bits. The prefix "tera" is used in the metric system to denote one trillion (10^12). This measurement is commonly used in networking and telecommunications to describe data transfer rates or bandwidth. For instance, when discussing internet speeds or the capacity of data connections, terabits are often a relevant unit of measurement, particularly in high-speed networking contexts.

In contrast, 1 billion bits, which refers to 1 gigabit (Gb), represents a smaller quantity of data, leading to confusion if misidentified with terabits. The other options also reflect smaller units of digital information: 100 gigabits is significantly less than a terabit, and 1024 megabits translates to around 1 gigabit, further establishing that these terms denote much smaller volumes of data than 1 terabit.

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